Treasurer
Joe Hockey
shrugged off the absence of Mexico and South Africa’s finance ministers at this week’s Group of 20 meetings in Sydney, saying its focus would remain on the need to spur economic growth around the world.

Both countries are among a group of emerging economies at the centre of a deepening debate over whether they have fallen victim to the US Federal Reserve’s decision to reduce its monetary stimulus.

Mr Hockey pointedly said he was “incredibly pleased" that counterparts would be in Sydney this week from Indonesia, India and Singapore, all countries that have suffered capital withdrawals following the taper. “This is a very strong attendance," Mr Hockey said.

Mr Hockey, as chairman of this weekend’s gathering of G20 finance ministers and central bank governors, is walking a diplomatic tightrope in finding an agreement among the group on the US tapering.

The Australian Financial Review reported on Tuesday that tensions over the tapering may be eased by the absence of top officials from South Africa and Mexico.

South African finance minister Pravin Gordhan has been a strong critic of the Fed’s decision to wind back bond purchases, which have ­triggered capital withdrawals from African economy. By contrast, Mexican finance minister Luis Videgaray Caso has supported the taper, saying a stronger US would benefit his nation more.

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He expressed hope this week’s ­meeting would involve a “more balanced discussion" that recognised the recent volatility in economic ­markets did not have anything to do with the Fed.

“Ultimately, it’s in each country’s back yard that they’ve got to look to build the resilience to deal with this volatility," he said. “To the extent that you see a strengthening in the US economy and normalisation in interest rates, the world is going to have to adjust.

“This will have an impact on countries with large debt levels, who may well be financing at current rates, but will feel additional pressure from higher rates.

“I hope what comes out of the communiqué is the result of a good and frank discussion – not just cheer squad for one side. That’s what markets are looking for."

Mr Hockey said the meetings would have a direct impact on people’s lives, alluding to the impact the US taper should have in dragging down the value of the Australian dollar.

He listed the key items on the agenda and said it was vital Australia “drive" the push for greater economic growth.

“Many people, they’ll look at it, and say ‘how does the G20 affect me?’" he said.

“Well, the level of the Australian ­dollar affects everyone in Australia; the tax that business pays affects ­everyone in Australia; the infrastructure roll-out, the partnerships with the private sector, affect everyone in Australia.

“It is very significant for Sydney and Australia to have the world’s leading finance ministers and central bankers here determining the future of the ­global economy.

“It’s a big event; we should be proud that we’re hosting it, but we’ve got a job to do to drive a strong agenda on growth."